Anthem Inc (ANTM) Received its Third Buy in a Row

By Jason Carr

After Evercore ISI and Barclays gave Anthem Inc (NYSE: ANTM) a Buy rating last month, the company received another Buy, this time from Cantor Fitzgerald. Analyst Steven Halper reiterated a Buy rating on Anthem Inc today and set a price target of $330. The company’s shares closed yesterday at $272.71.

Halper said:

“We rate Anthem (ANTM) Overweight and our price target remains at $330. The company’s results should benefit from the near-term savings of insourcing its PBM. Longer-term growth rates should benefit from the use of additional savings to drive market share gains in its respective markets. $330 price target is based on DCF analysis. Our DCF assumptions include a mid- to-low single-digit long-term growth rate, significant pharmacy cost savings beginning in 2021, debt to capital of 35% and a weighted average cost of capital of 8.0%.”

According to TipRanks.com, Halper is a top 100 analyst with an average return of 18.8% and a 64.8% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.

Currently, the analyst consensus on Anthem Inc is a Strong Buy with an average price target of $319.89, implying a 17.3% upside from current levels. In a report released yesterday, Barclays also maintained a Buy rating on the stock with a $305 price target.

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Anthem Inc’s market cap is currently $70.61B and has a P/E ratio of 15.80. The company has a Price to Book ratio of 2.43.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is negative on the stock.

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Anthem, Inc. provides life, hospital and medical insurance plans. It offers a broad spectrum of network-based managed care health benefit plans to the large and small employer, individual, Medicaid, and Medicare markets. The company operates through two segments: Commercial & Specialty Business, Government Business and Other.